Answer:
A. Rental insurance covers your personal belongings but not the building
Explanation:
RENTAL INSURANCE is a type of insurance that help to cover or replace a person or an individual personal belongings in the case of unforseen circumstances such as theft ,fire accident or damage to Property which may arise and on the second hand RENTAL INSURANCE does not cover damage to a person personal property that arise due to damage causes by natural disasters such as hurricanes as well as carpeting repair due to water heater leakage.
Lastly RENTAL INSURANCE does not cover the actual building reason been that it only landlord Insurance policy that covers the actual building which means that the correct statement regarding rental insurance is :Rental insurance covers your personal belongings but not the actual building.
<span>the type of risk that is most likely to be insurable is : A. pure risk
Pure risk refer to the type of risk in which loss is the only possible outcome.
Example of pure risk : Identitiy theft
Identity theft is insurable because the only possible outcome of identity theft is a loss in assets, there is no way someone could get more wealth after identity theft</span>
Answer:
Equipment can be depreciated and the journal entry would be:
December 31, 202x, depreciation expense
Dr Depreciation expense 5,520
Cr Accumulated depreciation - equipment 5,520
Accumulated depreciation is a contra asset account that decreases the net value of a fixed asset.
On the other hand, land cannot be depreciated. Land must always be reported at its historical cost (purchase price) even if its fair market value increases or decreases over time.
Answer:
$25,680
Explanation:
For the computation of revised depreciation for both the second and third years first we need to follow some steps which are shown below:-
Depreciation cost = Cost - Salvage value
= $66,200 - $2,000
= $64,200
Annual depreciation under SLM method = Depreciable cost ÷ Useful life
= $64,200 ÷ 5
= $12,840
Book value of the equipment = Cost - Annual depreciation
= $66,200 - $12,840
= $53,360
Remaining depreciable cost = Book value at point of division - Salvage value
= $53,360 - $2,000
= $51,360
Annual depreciation for year 2 and year 3 = Remaining depriciable cost ÷ Remaining useful life
= $51,360 ÷ (3 - 1)
= $51,360 ÷ 2
= $25,680
Answer:
A. analyze the current situation!
